Business Registration and Incorporation in the Philippines

Our corporate and tax lawyers will carefully assess your future business in the Philippines to determine the investment vehicle best suited for you and your company. We will assist with formation procedure, planning, and registration with the relevant government agencies starting with the Philippines SEC in Metro-Manila, Davao, Santa Rosa (Laguna), Cebu, Clark, and Subic.

Investment incentives such as income tax holidays are available to foreign investors engaged in activities that significantly contribute to national industrialization and socio-economic development, or are considered export-oriented enterprises such as IT-BPOs or other companies with cost center operations. Eligible businesses may apply for incentives with Philippine government agencies such as PEZA, BOI, CEZA, and TIEZA.

Business Registration for Most Foreign Companies

Foreign investors typically register and start a business in the Philippines through a Domestic Corporation or Branch Office. Either entity has advantages and disadvantages. Corporations are more favorable in terms of administrative regulation. Branches may be more advantageous taxwise, but cannot be used if the activities undertaken by the business are included in the Foreign Investment Negative list (FINL) since they are considered completely foreign-owned. The FINL prescribes the Philippine equity participation necessary for various businesses restricted from full foreign ownership by law or the Constitution. Corporations are able to accommodate the necessary Philippine equity requirements.

Where a business entity exports goods or services and generates revenue from abroad exceeding 60% of its gross sales, it may be fully foreign-owned and it is exempted from the regular $200,000 inward capital remittance requirement. These qualified entities are considered Export Enterprises under the Foreign Investments Act. Branches and domestic corporations considered export enterprises can be registered with as little as P5,000 paid up capital. Philippine business however, must open a local bank account and most banks require P25,000 - P50,000 as an opening balance.